Organic Law For The Closure Of The Banking Crisis Of 1999

Original Language Title: Ley Orgánica para el Cierre de la Crisis Bancaria de 1999

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now

Read the untranslated law here: http://www.asambleanacional.gob.ec/es/system/files/ley_para_el_cierre_de_la_crisis_bancaria_de_1999_tramite_no._165247.pdf



WHEREAS: Article 3 paragraph 5 of the Constitution of the Republic establishes as a primary duty of the state to plan national development, eradicate poverty, promote sustainable development and equitable redistribution of resources and wealth to enter good living; That Article 303 of the Basic Law provides that the Central Bank of Ecuador is a legal entity of public law, whose organization and operation shall be established by law; That Article 133 of the Constitution of the Republic of Ecuador determines that the laws will be organic and

Ordinary, defining organic laws in paragraph 2 as those governing the exercise of constitutional rights and guarantees; That Article 377 of the designated law prescribes that the National System of Culture has as one of its purposes safeguard social memory and cultural heritage; That the Ministry of Culture and Heritage holds the rectory of the National System of Culture; That Article 282 ibid provides that the State shall regulate the use and access to land that must comply with social and environmental function. A national land fund, established by law, regulate equal access of peasants to the land; That in such under the Ministry of Agriculture, Livestock, Aquaculture and Fisheries, fulfilling the constitutional mandate and the principles outlined in the National Plan for Good Living to eradicate poverty, promver sustainable development, equitable redistribution of wealth, among others, runs the flagship project land Plan, as policy of redistribution of agricultural land among the peasants lack of it, in order to allow efficient use which results in growth and employment for small and medium farmers organized; That, due to poor regulation resources were delivered and guarantees were granted from the Central Bank in favor of the private sector, leading to the disastrous financial crisis of 1999, so it is necessary to establish legal parameters to close definitively granting such guarantees and their consequences; That should forewarn the interests of the State in the transfer of assets between the Central Bank of Ecuador and the Ecuadorian Public Sector, for the good management of public resources and their proper destination within the regulatory framework of this is guaranteed this law; That the Executive Decree No. 798, published in Official Gazette No. 485 of July 6, 2011, reformed by Executive Decree No. 1031 published in the Official Gazette No. 637 of February 9, 2012, transformed the Unit Real Estate public Sector Management in the Department of Real Estate Management of public Sector as a strategic entity of public law, legal, property and own budget and technical, administrative and financial independence, under the Ministry of Urban Development and Housing, with home in the city of Quito and decentralized management at national level; That by the Banking Board Resolution JB-2009- 1427 of 21 September 2009, published in the Official Gazette No. 51 of October 21, 2009, was issued standards and established the mechanism for transferring assets financial institutions in liquidation to another institution of the financial system that has legal competence to carry out coercive collection procedures;

Supplement - Official Gazette No. 188 - Thursday, February 20, 2014 - 3


That, office of the Superintendent of Banks and Insurance No. SBS-INJ-SAL-2009-1337, of 15 December 2009, was appointed the Central Bank of Ecuador as the institution of the financial system that will act as a assignee in the process of forced liquidation of ls financial institutions, and prior knowledge and express consent of the Board corresponds receptar assets of entities in liquidation, whose transfer has been instructed by the control body through letters addressed to the liquidators who must sign the corresponding public deeds; That the Organic Law Repealing the Law on Credit Information Bureaus, published in the Official Gazette Supplement No. 843 of December 3, 2012, at its Sixth Transitory Provision determines that the Central Bank of Ecuador assumes the quality of assignee assets and therefore portfolio collection of financial institutions "closed bank" ladenominada, without becoming a successor in law of these financial institutions. Which implies the need to establish coordination mechanisms and instruments for the recovery and realization of the assets transferred by financial institutions extinguished in favor of the Central Bank of Ecuador; That in order to permanently close the dark chapter of national history that represents the financial crisis of 1999, it is imperative irrevocably transfer the assets that currently manages the Central Bank of Ecuador to public institutions that can give you a profitable use, the benefit of the social group; and pay the debts to the private and public sector; Who, having been a bank holiday Ecuadorian financial system 1999, a phenomenon generated by a small economic group s benefited at the expense of the majority of Ecuadorians, who generated the most ysocial financial, economic crisis in Ecuador, whose effects were reflected in Ecuadorian families with an alarming decline in purchasing power of the sucre and subsequent extinction, unemployment, underemployment, migration, which led to the violation of rights to a decent life, freedom to have their own resources, protection of the State citizens, it is imperative to have a law organic character that ends with the effects of the banking crisis, which so far has not been able to definitively resolve; and, In exercise of the powers set out in Article 120, paragraph 6 of the Constitution of the Republic, issues the following: ORGANIC LAW FOR THE CLOSURE OF THE CRISIS
1999
BANK Section 1. Termination of trust and contr ata record bienes.- Trusts created by the extinct financial institutions, their companies domiciled abroad, related companies or inactive debtor companies whose assets should be transferred to the Central Bank of Ecuador under and the Bank Board resolution No. JB-2009-1427 of 21 September 2009, as well as those trusts


Contain goods that were delivered in payment to the Central Bank of Ecuador will be completed in full. As a result of the termination of the trust agreements, from the publication of this Law in the Official Gazette, the Central Bank of Ecuador will have a period of up to one hundred twenty (120) days to liquidate the trust, and trust to one hundred fifty (150) days to transfer their heritage urban property in favor of Real estate Management Service Public Sector, INMOBILIAR and rural property to the Ministry of Agriculture, Livestock and Fisheries, MAGAP; and movable property, portfolio and other assets that have contributed to their vor af autonomous assets of the Central Bank of Ecuador. Contractual clauses that establish conditions that limit or hinder such transfers and those that establish any fees, including fees and return values ​​of property, shall be deemed unwritten. The Central Bank of Ecuador will sell and transfer to INMOBILIAR, MAGAP or the Ministry of Culture, as appropriate, as minority rights that hath beneficiary trusts that were transferred to him under Resolution JB-2009-1427. 2. Registration cle what other bienes.- recorders property and companies and the National Traffic Agency, at the request of the Central Bank of Ecuador, entered no cost, to name INMOBILIAR, MAGAP or the Central Bank Ecuador, the transfer of all real or personal property, contracts, rights and duties that fall on this, stating registered in the name of the extinct financial institutions, their domiciled abroad companies, related companies, trusts in appearing as constituents or beneficiaries, and issued the certificates in a period which may not exceed sixty (60) days from the request made. The entries made under the preceding paragraph shall be exempt from payment of fees and any rate. 3. Nullity cle the transfer dominio.- Any transfer of title in favor of private assets that should be transferred to the Central Bank of Ecuador, made since the resolutions No. JB-2009-1427 of the Banking Board and No. DBCE-002- 2009 the Board of the Central Bank of Ecuador without having been received authorization from the Central Bank of Ecuador shall be null and void. Article 4. Of the compañías.- Within thirty (30) days from the effective date of this Act, legal representatives or liquidators of companies that were or should have been assigned to the Central Bank of Ecuador under the Banking Board resolution No. JB-2009-1427, entered the transfer of shares and transfer of shares, as applicable, in favor of the Central Bank, which shall be notified to the Superintendency

4 - Supplement - Official Gazette No. 188 - Thursday, February 20, 2014


Company under preventing that failure to do the legal actions against him will begin. The Central Bank of Ecuador shall appoint the liquidators of inactive companies that were ceded, shall, regulate and pay their fees until the registration of the cancellation of the same in the relevant commercial register. In the case of companies that were active, the Central Bank of Ecuador will sell and transfer an additional thirty (30) days of such shares in favor of the line ministry to which they relate, the same as define its purpose and use. The legal representative of the Central Bank of Ecuador will determine the appropriate Ministry, which said shares will be transferred. The Ministry may transfer corresponding to those shares in whole or in part to the workers themselves or organizations Popular Solidarity Economy. Inactive liquidation and transferred to the Central Bank of Ecuador under Resolution No. JB-2009-1427 companies, will be canceled as of right do not already have assets. The Superintendency of Companies will execute all necessary measures to improve the cancellation of these companies within ninety (90) days after publication in the Official Gazette of this Act actions. The obligations mantegan pending such companies with the Service Internal and with the Superintendencia de Troupe s Revenue, they will not be charged, notwithstanding that shall be recorded in the equity deficit extinct by financial institutions that gave these companies. The Central Bank of Ecuador canceled employer obligations such companies tuvieren pending with the Ecuadorian Institute of Social Security, my most to be settled unposted default interest or penalties. The obligations generated by these concepts to the date of enactment of Resolution JB-2009- 1427, will be reported by the Central Bank of Ecuador to the Superintendency of Banks and Insurance Management Unit and Implementation of Public Law, UGEDEP, entities by the recovery of the equity deficit. Article 5. Exemption from taxes and other pagos.- Termination and liquidation of the trust agreements will be exempt from all kinds of taxes and payment of fees for property restitution. They will also be exempt from tariffs and taxes the transfer of assets to MAGAP, INMOBILIAR and other public sector entities. The taxes and expenses that are due caused by the assets referred to this Law shall be calculated without interest and will be recorded in the equity deficit by financial institutions extinct. The Central Bank of Ecuador, INMOBILIAR and MAGAP be exempt from taxes, fees, contributions, fines and expenses that are payable caused when the transfer of assets to which this Act refers.

Cle 6. Transfer the assets to entities Público.- Sector The Central Bank of Ecuador transferred gratuitously for MAGAP INMOBILIAR or, as appropriate, ownership of all real estate and furniture that they containing, provided by the extinct financial institutions, their companies domiciled abroad and related companies under the Banking Board resolution No. JB-2009- 1427, and returned in the terms described in this Law. the transfer will include everything according to the Civil Code property may be deemed by nature, destination or accession, contracts and charges that weigh on them and litigation rights and encumbrances. The beneficiary organizations of the transfer of these assets will be successors in right I affectations charges weighing on such assets as it ordered these provisions. The assessed value of rural properties that were transferred to the Central Bank of Ecuador and under the Banking Board Resolution No. JB-2009-1427, for purposes of transfer to MAGAP or INMOBILIAR, will correspond to rural property valuation, although these properties had been, after the issuance of the above-mentioned resolution of the Banking Board, city declared by municipal ordinances. Cle 7. Transfer the real culturales.- Cultural assets that were transferred by the extinct financial institutions in favor of the Central Bank of Ecuador under the Banking Board Resolution No. JB-2009-1427, will be transferred to title free, prior inventory and appraisal to the Ministry of Culture.


The transfer will be executed within a maximum period of one hundred eighty (180) days from the effective date of this Act. This transfer will be implemented through public deed.

Cle the resources.- 8. The Ministry of Finance will provide the resources, either in cash or securities, equal to the amount amounting to the assessed valuation of the assets transferred to the Central Bank of Ecuador under and resolution Banking Board No. JB-2009-1427, and that work of this Act are transferred to INMOBILIAR, the MAGAP and other public sector institutions, in the form and manner agreed upon with the Central Bank of Ecuador, for for recovery and settlement established in this Law. in the case of shares of companies listed, the Ministry of Finance will provide the resources, either in cash or securities, the amount to which rise the market value of the Actions; and for companies that are not publicly traded, for the equivalent value of shares amount recorded in books. The Central Bank of Ecuador adjusted rateable value accounting to transfer property, and market value recorded in books or, as appropriate value, the transfer of shares and transfer of shares of companies that perform under

Supplement - Official Gazette No. 188 - Thursday, February 20, 2014 - 5

This Law. The Central Bank of Ecuador for the administration of movables apply current legislation. Article 9. Payment of amounts due to privado.- Sector The Central Bank of Ecuador will make payment of the debts of private individuals and legal entities that were transferred by the extinct financial institutions under the resolution No. JB-2009- 1427, without distinction of the debtor financial institution, up to an amount of seventy-five thousand dollars of the United States of America (USD $ 75,000.00) per creditor and only once, exclusively with resources from financial institutions extinct, according to the following order: a) deposits of financial institutions extinct,

Except those associated with preference given to those depositors who belong to the priority groups;

B) Securities owed workers by

Wages, workers' compensation recognized in final judgments, utilities, reserve funds and retirement pensions under the extinct financial institutions, and obligations to the Ecuadorian Institute of Social Security derived from such labor relations that are recognized by the Central bank of Ecuador; Y;

C) All other liabilities funds raised by

Extinas financial institutions, under procedures not covered by the previous paragraphs, with the exception of those with deposits of credit or other related assets.

Notwithstanding the foregoing, payments are recorded for accounting in each defunct financial institution separately. The proceedings the Central Bank of Ecuador shall notify the Superintendency of Banks and Insurance Management Unit Public Law UGEDEP, entities in charge of the collection of the capital deficit. The payment of the claims provisions of this article concluded within three hundred sixty five (365) days from the publication of this Act. For purposes of payment of pensio is jubilee claimed by administrative authority, with als charge financial institutions extinct referred to in paragraph b) of this Article, the Central Bank of Ecuador sent to the Ministry of Labour Relations detail claimants for recalculating retirement pensions charged to financial institutions extinct processed. For the payment of judgments that recognize labor rights referred to in subparagraph b) shall be considered only labor lawsuits filed before the issuance of Resolution JB-1427-2009 of 21 September 2009. The payments provided for in this Article shall be made in cash, one-time to the maximum amount of seventy-five thousand dollars of the United States of America (USD $ 75,000.00) per depositary creditor and those found under item b) of this article.

Article 10 Payment of amounts due to Público.- Sector respecting the priority given in the previous article, the Central Bank of Ecuador, with the remaining balance shall be paid to public sector entities, without distinction of the entity of provenance of financial resources for payment, up to the amount of their deposits or debts in the following order: a) deposits or debts of any depository


Public sector institution; and, b) Management Unit and Law Enforcement

Public, UGEDEP or his successor in right, the values ​​reported by the former liquidators of the extinct financial institutions in favor of the Deposit Guarantee Agency.

Notwithstanding the foregoing, payments are recorded for accounting in each defunct financial institution separately. The proceedings the Central Bank of Ecuador shall notify the Superintendency of Banks and Insurance Management Unit Public Law UGEDEP, entities in charge of the collection of the capital deficit. The payment of the claims provisions of this article concluded within one year from the publication of this Law. Cle 11. nondepository the extinction DEBTS AND acreencias.- The surplus amounts to seventy-five thousand dollars of the United States of America (USD $ 75,000.00), the payment provided for in Article 9, and private debts not covered in this article, will become non-depository credit balance and paid only after completion of the payment of the claims to public sector entities referred to in Article 10. the public debts for which payment is not sufficient to cover the balance of the funds specified in Article 10 shall be provided by value received by public Sector lasentidades the Ministry of Finance. The Central Bank of Ecuador consolidated and accounted for such assignments. The credit balances ought to have been extinct between financial institutions, will become extinct, for payment purposes by any entity of the State. Notwithstanding the above, once the process and deadline for payment of beliefs concluded, the Central Bank of Ecuador reportaá values ​​hayn remained unpaid and those that were ceded for value received to the Ministry of Finance, the Superintendency of Banks and Insurance and UGEDEP, entities in charge of the collection of the capital deficit, in order to comply with what is stated in the General Provision Two of this Act. neither the state nor its institutions, under any circumstances or scenario, assume the payment of debts that could not be met in the manner provided in this Act. Section 12.- Resources payment.- for payment of the debts mentioned in articles 9 and 10 of this Act, the Central Bank of Ecuador use, without distinction of the financial institution of provenance, all the

6 - Supplement - Official Gazette No. 188 - Thursday, February 20, 2014


Resources Extinct financial institutions to maintain balance recorded as recovery management and resources referred to in Article 8 of this Act. The payment of the debts and made exclusively Those persons registered as creditors of financial institutions extinct at the time of transfer of assets to the Central Bank of Ecuador and have been recognized by the liquidators according to the provisions of articles 159 and 169 of the General Law of Financial Institutions in force on the date of issue of the Banking Board resolution No. JB-2009-1427, without any interest is recognized. To make the payments set out in Article 10 of this Law, the Central Bank of Ecuador may deliver certificates Liabilities Secured (CPG) or Certificates of Deposit Rescheduled (CDR) or depositories debts without distinction of the entity arising, or securities that for this purpose issued by the Ministry of Finance. Creditor public entities will receive, as payment for its loans by deposits or obligations of the extinct financial institutions, financial instruments mentioned in the preceding paragraph at face value. Cle what 13.- Forfeiture for collection.- The credits unclaimed by beneficiaries within one hundred eighty (180) days from the call for payment shall be extinguished and will not be enforceable yel beneficiary forfeits the payment. Unclaimed resources will be deposited in the National Treasury Single Account as income of the General Budget. The credits in which they can not identify the beneficiary of it, either because they comprise the full names, identity card number or the number of Registration of Taxpayers, be deemed non-existent, and therefore, the Central Bank of Ecuador remove it from the records and report to the Superintendency of Banks and Insurance and UGEDEP, entities in charge of the collection of the capital deficit. Cle 14. Recalculation and the recalculation of the portfolio.- The Central Bank of Ecuador recalculates parte and in compliance with the conditions laid down in this Act, the portion of the loan from financial institutions extinct provision of the resolution portfolio Banking Board No. JB-2009-1427, excluding the items for expenses and court costs, legal interest and arrears were generated until the publication of this Act, except that which has linked the condition. Recalculation product will be registered accounting databases in the Central Bank of Ecuador. The National Financial Corporation will apply the same procedure Recalculation established in the preceding paragraph, the portfolio amount that would have been transferred by the extinct financial institutions; debtors of this portfolio will receive the same benefits as debtors transferred to the Central Bank of Ecuador portfolio.


The basis for the new calculation apply only to claims showing at not bound by ownership, management or presumption, in accordance with the General Law on Financial Institutions and Coding System Resolutions of the Superintendency of Banks and Board ySeguros banking and debit natural or legal persons or shareholders of the latter are not already resident in tax havens. Recalculation For purposes of application will be made taking the value of the initial capital delivered in credit, which will be applied to the annual interest rate of 5% for the period since the date of granting credit to the publication of this Law. this law is presumed that the value of initial capital is reported to the Central Bank of Ecuador, under the issuance of Resolution JB 2009-1427, unless documentary evidence to the contrary. The tests will be appreciated by the competent authority in accordance with the rules of sound judgment. Debtors beneficiaries of this recalculation having documentation supporting payments, which have not been registered by the extinct financial institutions, or other relevant supporting documents shall within sixty (60) days from the publication of this Law to submit to the Central Bank of Ecuador or the National Finance Corporation, as applicable, documentation, and will signal an address or email address for notifications. If the petitioner is not any designated a home or e-mail address or judicial locker notifications, or if they had done this were inaccurate, the Central Bank of Ecuador or the National Finance Corporation, as applicable, within sixty (60) days from the submission of documentation, notify ypublicará on its website the results of the analysis of the documentation submitted. Dividends or partial installments that debtors have paid in the extinct financial institutions, the Central Bank of Ecuador or the National Finance Corporation, and the latter's have recognized, will be applied directly as fertilizer to the initial capital, regardless of dates and actual times in which they have been incurred by the debtors, and the balance of capital rate of 5% annual interest rate will remain in effect from the date of issue until full settlement of the obligation will apply. In any case paid amounts or assets which have been seized or auctioned be returned. The values ​​that are canceled by principal and interest result of the recalculation, will be applied under the general rules on allocation of payments contained in Article 1611 of the Civil Code and the Central Bank will determine the timing, conditions and payment. Article 15.- Conditions for the implementation of portfolio.- recalculation and recalculation of benefits Recalculation and reassessment portfolio, established by this Act, shall apply only for no longer linked parte loan portfolio, in accordance with the following conditions 1. debtors whose initial capital of the operation was

Hundred thousand dollars of the United States of

Supplement - Official Gazette No. 188 - Thursday, February 20, 2014 - 7

America (USD $ 100,000) will access the recalculation without restriction.

2. Debtors whose initial capital of the operation is

Increased to one hundred thousand dollars of the United States of America (USD $ 100,000) and up to two million dollars of the United States of America (USD $ 2,000,000), they will welcome the benefit of recalculating, provided that they have made payments to the debt, or if not they have done fertilizers debt must pay at least 10% of the value of the initial capital of its debt within a maximum period of one hundred eighty (180) days from the effective date of this Law.

3. Debtors whose initial capital of the operation exceeds

Two million dollars of the United States of America (USD $ 2,000,000), they will welcome the benefit of recalculating, provided they have made fertilizers of at least 50% of the value of the initial capital of the debt or if you have not performed fertilizers debt must pay l least 35% of the value of the initial capital of its debt within a maximum period of one hundred eighty (180) days from the effective date of this Act.


The process of recalculating debt will be considered closed once the documents have been signed to formalize the obligation to pay to the Central Bank of Ecuador or the National Finance Corporation, as applicable. This period may not exceed one hundred and twenty (120) days from the publication of this Law. The surety or guarantee of the original obligations object of the restructuring will continue to be the guarantor of the recalculated obligations, unless the principal debtor render sufficient collateral . The deadline for payment of the balance will be recalculated six (6) years, which will apply the same annual interest rate of 5%. The first year will be a grace period in which interest shall, during which the debtor is not obliged to make payments, except the express wish to the contrary. The Central Bank of Ecuador's National Financial Corporation, as appropriate, will determine the frequency of payments applicable to the recalculated portfolio. The application of these rules does not prevent debtors can cancel their debts in advance. Failure of two consecutive payments or lack of attendance at the signing of the documents formalizing the obligation to pay, suspend the benefits granted by this Act and reactivates or be grounds to immediately start the process of coercive Yde ordinary court for the full amount debt, which remains more unpaid, without the benefit of recalculating; applying the default rate prevailing at the date of suspension of benefits. Payments that may have been made under this Act shall be applied in accordance with Article 1611 of the Civil Code. Ar ticle 16.- Suspension of coactiva.- Since the issuance of this Act shall be suspended processes

Initiated coercive and judgments of insolvency or bankruptcy for one hundred and twenty days (120) days, during which debtors wishing to benefit recalculation mechanism may attend the signing of the relevant documents for your application. The Central Bank of Ecuador or the National Finance Corporation, as applicable, request the suspension of the processes in the respective courts. Coercive suspension will be maintained while the debtors remain up to date in payments resulting from the recalculation of its debts. While suspended Ylos coercive processes of insolvency or bankruptcy judgments are suspended, also, the deadlines for prescription. Unrelated debtors who are in the portfolio of trusts which are transferred and transferred to the Central Bank of Ecuador under this Act shall be considered in the process of recalculating established in this article. Cle insolvencia.- what 17.- Presumption of insolvency of debtors who fail to comply with the order of payment in the reactivated or initiated coercive procedures, because of default or late payments provided for in Article 15 shall be presumed and, as consequence of that presumption, the bankruptcy, which will be processed according to the rules of Section IV of Book II of the Code of Civil Procedure shall be declared. Article 18.- Forms of payment.- Debtors of the extinct financial institutions can pay their obligations in cash, certified check, by offsetting debts with debts unrelated depositories, payment in goods which have been incorporated in the original warranty credit liabilities guaranteed with certificates or certificates of deposit or depository reprogrammed debts registered in the Management Unit and Implementation of Public law, UGEDEP or the Central Bank of Ecuador. The Central Bank of Ecuador and the National Finance Corporation may receive up to 20% exclusively for the payment of the recalculated obligations under this Act, certificates of guaranteed liabilities or certificates of rescheduled deposit or depository credits, without distinction of the institution financial extinct of provenance. Depositories debts were not related to received this payment mechanism should be accounted for by the Central Bank of Ecuador or the National Finance Corporation, as a credit to the respective portfolios in charge; such receivables are eliminated from the responsibility for payment of the Central Bank or National Finance Corporation and will be reported to the date of cancellation note and entities in charge of the collection of the capital deficit. Property consisting original credit guarantee and they are delivered by debtors in payment for its obligations, a process of assessment that will be conducted by qualified by the Superintendency of Banks and Insurance, at the request of Judge experts will be received prior coactiva the Central Bank of Ecuador or


8 - Supplement - Official Gazette No. 188 - Thursday, February 20, 2014

National Finance Corporation, in charge of the recovery and collection of the obligation and will be transferred to INMOBILIAR or MAGAP, as appropriate, free of charge. The Central Bank of Ecuador and the National Finance Corporation recorded in its accounting records as debt payment to the value at which the asset is received. In movable assets which have been incorporated in the original credit guarantee and they are delivered by debtors in payment for its obligations, prior appraisal by a qualified by the Superintendency of Banks and Insurance expert they will be received, at the request of Judge coercive the Central Bank of Ecuador or the National Finance Corporation in charge of collecting the portfolio of financial institutions extinct. Movable property received as payment in the preceding conditions, were sold at public auction or auctioned by the Central Bank of Ecuador or the National Finance Corporation, within no more than three hundred sixty five (365) days from the reception. The Central Bank of Ecuador recorded in its accounting records as debt payment to the resulting value of the auction. Article 19. Termination of obligaciones.- The bonds purchased with the extinct financial institutions in which the debtor had already given the guarantee constituted or where garments shall have been foreclosed assets and mortgages auctioned for debt repayment, They shall be canceled in the proportion in which the guarantees had been established at the request of an interested party. If the guarantee covers the total debt, the debt is paid in full, otherwise the balance may be subject to the provisions of Article 14. In the case of real or personal property that had not been incorporated in the original credit guarantee and they had been seized or auctioned it will be allocated to debt as fertilizer recalculated the value of the auction. If the auction of movable or immovable property has not been made shall be allocated as payment to the debt the fair value of the asset at market value on the date the embargo, the same that will be determined by a qualified by the Superintendency of Banks and Insurance expert at the request of the judge in charge of coercive recovery portfolio. Cle 20. Excluding the records crediticios.- Debtors who are acogieren the recalculation made by the Central Bank of Ecuador andthe National Financial Corporation and which have recalculated Documents obligation and guarantors will be excluded from the records credit information and credit histories will be restored in the data Logging bles, or institution in its stead. The Central Bank of Ecuador andthe National Financial Corporation notify the Superintendency of Banks and Insurance, DINARDAP and the Ministry of Labor Relations of these cases. The National Financial System entities or those empowered to grant scholarships or financial aid for academic purposes, be considered for granting loans, scholarships or financial aid for academic purposes


Rating and credit history of borrowers restored by the mechanisms under this Act to act as applicants, legal representatives, sureties. Ar ticle 21.- Termination of ibutos tr on furniture-Movable property WHATSOEVER no matter the transfer to be made by the Central Bank of Ecuador to the public sector entities mentioned in this Law, goods shall be disposed of by public auction process or auction the wording of General Regulations replacing of Public Sector Assets and relevant laws. Tributes caused to such property from the issuance of the Banking Board Resolution No. JB-2009-1427, until the date of publication of this Law, which defaults mechanism are located, they shall be paid from the proceeds of the public auction or auction, until recovered in carrying value of such assets. Surplus values ​​that can not be covered in compliance with this article will be extinct. The transferred movable property which can not be by their obsolescence or wear conditions should be derecognized following the procedures established in the General Regulations replacing Real Public Sector. Cle the Correction of Errors 22. Errors in substance and form in terms of numbers and recorded values ​​that exist in the writings of transfer of assets, databases and document archives transferred to the Central Bank Ecuador, affecting rights debtors must be corrected by the Central Bank of Ecuador, on request those interested party, accompanying the evidence admitted by the Code of Civil Procedure as may be relevant and sufficient, within one hundred eighty (180) days from the publication of this Act. the inconsistencies of databases, scripts and files must be rectified by the Central Bank of Ecuador, following the report of the responsible area. Any correction to be made on such information by the Central Bank of Ecuador will be reported to the Superintendency of Banks and Insurance and UGEDEP, entities in charge of the collection of the capital deficit. Article 23.- No Limit liability.- public sector entity will respond in any way assume any obligation i is d rive of judgments against the extinct financial institutions, their companies domiciled abroad and affiliated companies, nor for collection actions arising from the economic deficits, except deaquellas obligations referred to in subparagraph b) of Art. 9. Article 24 Treatment igualitario.- non credit obligations arising from the extinct financial institutions up to five thousand dollars the United States of America (USD $ 5,000.00) and credit obligations whose capital is less than that amount, receive the treatment set out in the Sixth Transitional Provision of the Organic Law Repealing the Law on credit Information Bureaus and Reformatory the System Law

Supplement - Official Gazette No. 188 - Thursday, February 20, 2014 - 9


National Public Data Registry, the Organic Law of the People and Solidarity Economy and Financial Sector Popular and Solidarity and the Companies Act. The Central Bank of Ecuador and the National Finance Corporation, regularized the respective accounting records, and report to the Superintendency of Banks and Insurance and the National Directorate of Public Data Registry DINARDAP, so you proceed with the removal of their credit histories, and notify the Ministry of Labour Relations of these cases. Cle portfolio.- what 25.- Compensation Within thirty (30) days from the effective date of these provisions, the Central Bank of Ecuador and Management Unit and Implementation of Public Law, UGEDEP, proceed to refine and record in their portfolio balances related compensation made to the issuance of this Act. Section 26.- Regulación.- the Banking Board, or his substitute, issue the corresponding resolutions for the implementation of this Act. cle it 27. stealth and Reservas not apply stealth or reservation regarding operations and general information of the extinct financial institutions. Article 28.- processes alienation of movable and immovable property which are pending in the Central Bank of Ecuador Yque until the publication of this Act have not been completed, shall be concluded by INMOBILIAR and MAGAP, as appropriate, from the state they are respecting acquired rights. the quality of executive titles to global accounting entries which owns the Central Bank of Ecuador, under the transfer of assets made by the Banking Board Resolution No. JB-2009-1427 is given, as well as those held Management Unit and Implementation of Public law, UGEDEP. Article 29.- Coercive judgments substance the Central Bank of Ecuador, the Superintendency of Banks and Insurance and the National Finance Corporation against companies and / or companies whose majority shareholder is the UGEDEP, during the seizures companies linked, they must be filed. GENERAL PROVISIONS First: The taxes and expenses levied on the assets to which this Act refers, which defaults mechanism are located to the date of publication in the Official Gazette of this Law, caused that owed by assets that refers this Act shall be calculated in interest. Second: The effect of the extinction of the credits provided for in Article 11 of this Law, does not relieve the payment of its obligations for equity deficit to former shareholders representing 6% or more of the shares of each of the extinct financial institutions, their former legal representatives and former major


Administrators, under the terms provided in Article 8 of the Law Amending the General Law on Financial System Institutions and Restructuring Act in Economic Matters in the Tax Area Financial, published in the Official Gazette Supplement No. 659, 12 March 2012. Third: All expenses incurred by the Central Bank of Ecuador, whether taxes, fees, contributions, contributions or any other nature, under this Act, the transfer of assets, liquidation trusts or companies will be charged to the economic deficits of the respective financial institutions liquidated. Exemption from payment of taxes, levies, fines and expenses to those referred to in Article 5 of this Act, shall not be deducted from equity deficit which are required shareholders representing 6% or more of the shares of each of the extinct financial institutions, their former legal representatives and former senior managers. The Central Bank of Ecuador notified of these values ​​to the Superintendency of Banks and Insurance and UGEDEP, entities in charge of the collection of the capital deficit for the exercise of the respective collection action. Fourth: The Superintendency of Banks and Insurance and UGEDEP in collection actions or that are initiated for the recovery of the economic deficits of the extinct financial institutions that received state resources for rescue, include principal and interest generated from the date of allocation of such resources, regardless of the date of its registration by the former Deposit Insurance Agency or its legal successor. The resources r cuperen by the recovery of the equity deficit they will be delivered by the Superintendency of Banks and Insurance and the UGEDEP the General Budget. Fifth: Fiduciary that do not comply with this Act shall be punished by the Superintendency of Companies with a fine equivalent to twenty unified basic wage of the worker and the repetition of the offense shall be punished with suspension of operating authority until it complies with the standard. Sixth: Untied debtors who have been declared insolvent or bankrupt have the right to benefit from the restructuring of debts, which the declaration has no effect, for which the judges who know the causes parte provide that feels reason that the defendant has benefited from the restructuring process prior acceptance of the restructuring. Seventh: The Superintendency of Banks and Insurance within sixty (60) days after publication in the Official Gazette of this Act, review the list of operations not related reported to the Central Bank of Ecuador in implementation of Resolution JB-2009-1427, and ratify the case, purge or rectify such prior to the application of the benefits of this Act list. His pronouncement will be notified to the Central Bank of Ecuador to be applicable to the recalculation.

10 - Supplement - Official Gazette No. 188 - Thursday, February 20, 2014


Eighth: The Central Bank of Ecuador sent to the Ministry of Foreign Affairs and Human Mobility information necessary for the broadcasting and communications corresponding to l promotion of this Act for Ecuadorians living abroad is made. Additionally, they will be exempt from any value in respect of consular fees for empowerment, having regard to the provisions of this Act Ninth. The Central Bank of Ecuador, the Superintendency of Banks and Insurance and other public institutions that mandate of this Act must make some ction in the process of closing the banking crisis of 1999, from the effective date of this Act semiannually submitted to the National Assembly a detailed report of compliance with the rules laid down in this Act . Tenth: the Attorney General's Office, the Comptroller General of the State and other entities involved, investigate and establish responsibilities, and boost the processes are followed, according to their competence, against exadministradores, directors, managers, adminis- trators temporary closed banks, liquidators, external auditors, appraisers, employees yen generally against any person of such institutions which have been responsible for its liquidation, termination and who have committed acts or omissions, or situations that violate Ecuadorian law. In addition they will boost the corresponding actions when they have given misuse of privileged information that has been given to bidders n auction processes and / or seizure of movable and immovable property of unrelated debtors. non-prescription causes those to be initiated or is initiated precautelará at all times. Eleventh: The benefit of recalculation for the purposes of this Act shall not include com novation, or restructures debt, or any other mode of extinguishing obligations, since the condition that if not met the signed agreement is pending is rolls back the obligation to its original condition. PROVISIONS reformatory First: Article 165 of the General Law of Financial Institutions, after the second paragraph incorpórense the following: Amounts owed by any concept, or companies owned by the shareholders or directors of institutions financial referred to in this article, including those not WHATSOEVER claimable, for these purposes, shall be deemed due and payable and therefore constitute, in favor of the company in liquidation that takes into administration, privileged first-class credit, even preferably to mortgage loans, structured in trusts or any other of a different nature than the salaries that workers or state institutions are due, including the Ecuadorian Institute of Social Security. For the recovery of such assets, the financial institution in liquidation start coercive based on the determination that practice based on solid reasons, and

Have precautionary measures and constraints that fit, even actual character on goods that are subject to tax of any kind or contributed to the trust, which will be paid by the executor, to collect what is owed to that with their product, respecting the particular priority in this paragraph, the amounts due under Article 167. the Banking Board, at the request justified the meeting of creditors or the liquidator, as the case may order the cancellation in the Register are met Property of registration of purchases and sales, repossessions, or any other traslaticio or limited legal title in respect of those goods companies linked to shareholders or managers, concluded after the suspension of operations of the related financial institution, so that such goods are fit to collect what is owed according to the precepts and certain procedure in the preceding paragraph. The bona fide third parties that may be affected by the cancellation of the transfer, will have action for damages only against those who have transferred ownership after ordered the suspension of operations of the financial institution linked.

Second: Replace the letter c) of Article 84 of the Law of the Monetary System and State Bank by the following:

"C) Ensure any kind of obligations, to natural or legal persons of private law";


Third: In the First Transitory Provision of the Organic Law Repealing the Law on Credit Information Bureaus and Law Reform to the National System of Public Data Registry, the Organic Law of the People and Solidarity Economy and Sector Popular and Solidarity financial and the Companies Act, replace the phrase "within a period not longer than 365 days" by "until 31 December 2014". TRANSITIONAL PROVISION SOLE The third and fourth paragraphs of Article 165 of the General Law of Financial Institutions, added by the present law, including apply to the institutions of the financial system to the date of enactment are in liquidation, and companies or companies whose shares are already in charge of those institutions mandated by the second paragraph of that article. PROVISION REPEAL all provisions of equal or lower rank, as well as the resolutions issued by the Banking Board to oppose this law. DISPOSAL The provisions of this Act ntrarán effect from the date of its publication in the Register Repealed Official. Done and signed at the headquarters of the National Assembly located in the Metropolitan District of Quito, Pichincha Province, on the sixth day of February 2014.

Supplement - Official Gazette No. 188 - Thursday, February 20, 2014 - 11

F.) Gabr iela Rivadeneira Burbano, President. f.) Dra. Libya Rivas Ordóñez, SECRETARY GENERAL. NATIONAL PALACE IN SAN FRANCISCO DE QUITO, MATROPOLITANO DISTRICT, A FOURTEEN FEBRUARY TWO THOUSAND AND PROMÚLGUESE.- CATORCE.- SANCIÓNESE f.) Rafael Correa Delgado CONSTITUTIONAL PRESIDENT OF THE REPUBLIC.

No. 14,078

THE SECRETARIAT QUALITY Ministry of Industry and
PRODUCTIVITY


Considering that in accordance with Article 52 of the Constitution of the Republic of Ecuador, "People have the right to dispose of goods and services of the highest quality and to choose freely and to accurate and not misleading about its content and characteristics "; Protocol of Accession of the Republic of Ecuador to the Agreement establishing the World Trade Organization is established - WTO, was published in the Supplement to Official Gazette No. 853 of January 2, 1996; The Agreement on Technical Barriers to Trade - WTO TBT Agreement, Article 2 establishes the provisions on the preparation, adoption and application of technical regulations by central government and its notification to the other Members; To be taken into account the Decisions and Recommendations adopted by the Committee on Technical Barriers to Trade of the WTO; Annex 3 of the TBT Agreement establishes the Code of Good Practice for the preparation, adoption and implementation of standards; Decision 376 of 1995 of the Commission of the Andean Community created the "Andean System of Standardization, Accreditation, Testing, Certification, Technical Regulations yMetrología", amended by Decision 419 of July 30, 1997; Decision 562 of 25 June 2003 the Commission of the Andean Community establishes the "Guidelines for the preparation, adoption and application of Technical Regulations in the Member Countries of the Andean Community and at Community level"; That Law No. 2007-76, published in the Supplement to Official Gazette No. 26 of 22 February 2007, renovated in the Ninth Reformatory Provision of the Organic Code of Production, Trade and Investment, Copci, published in Official Gazette

Supplement No. 351 of December 29, 2010, it is the Ecuadorian Quality System, which aims to establish the legal framework intended to: "i) Regular principles, policies and institutions related to activities related to the conformity assessment, to facilitate compliance with international commitments in this mteria; ii) Ensure compliance with the derchos citizens related to safety, protection of life and human, animal and plant health, environmental protection, consumer protection against deceptive practices and the correction and punishment of these practices; and iii) To promote and encourage the culture of quality yel improving competitiveness in Ecuadorian society ";

That Resolution No. 13365 of October 21, 2013, promulgated in the Official Gazette No. 121 of 12 November 2013 was formalized with the character-Emergent Mandatory Technical Regulation RTE INEN 085 riano equatorial " POTATOES (POTATO) FROZEN FRENCH FRIES "the same that came into force on 12 November 2013;


That the Ecuadorian Institute of Standardization - INEN, according to the functions specified in Article 15, paragraph b) of Law No. 2007-76 of the Ecuadorian Quality System, renovated in the Ninth Provision of Reformed matory Organic code of Production, Trade and Investment published in the Official Gazette Supplement No. 351 of December 29, 2010, and following the regulatory procedure provided in Article 29, paragraph one of the same Act, which states that: "regulation technique involves the preparation, adoption and application of technical regulations necessary to forewarn the objectives related to safety, health of human, animal and plant life, preservation of the environment and consumer protection against deceptive practices "has made the AMENDING 1 to Ecuadorian Technical Regulation RTE INEN 085 "POTATOES (POTATO) FROZEN FRENCH FRIES";

That by Technical Report contained in the matrix Revision No. REG-0037, of 11 February 2014, it was suggested to proceed with the approval and formalization of the amending regulation 1 subject of this resolution, which recommends approving and formalized with the character of the AMENDING 1 MANDATORY Ecuadorian Technical Regulation RTE INEN 085 "POTATOES (POTATO) FROZEN FRENCH FRIES"; That in accordance with the Law of the Ecuadorian Quality System and its General Regulations, the Ministry of Industry and Productivity is the governing body of the Ecuadorian Quality System; therefore, it is competent to approve and formalize the character of mandatory, AMENDING 1 Ecuadorian Technical Regulations RTE INEN 085 "POTATOES (POTATO) FROZEN FRENCH FRIES"; by publication in the Official Gazette, so that there is a fair balance of interests between suppliers and consumers;

That by Ministerial Agreement No. 11446 of November 25, 2011, published in Official Gazette No. 599 l of 19 December 2011, the Minister of Industry and